Analyzing Transactions Using the Financial Statement Effects Template Following are selected transactions of Mogg Company. Record the effects of each using the financial statement effects template. 7. Depreciation of $2,000 is recorded on the equipment from transaction 6. 8. The Supplies account had a $3,800 balance at the beginning of this period; a physical count at period-end shows that $1,600 of supplies are still available. No supplies were purchased during this period. 9. The company paid $20,000 cash toward the principal on a note payable; also, $1,000 cash is paid to cover this note's interest expense for the period. 10. The company receives $16,000 cash in advance for services to be delivered next period. 1. Shareholders contribute $20,000 cash to the business in exchange for common stock. 2. Employees earn $1,000 in wages that have not been paid at period-end. 3. Inventory of $6,000 is purchased on credit. 4. The inventory purchased in transaction 3 is sold for $9,000 on credit. 5. The company collected the $9,000 owed to it per transaction 4. 6. Equipment is purchased for $10,000 cash. Use negative signs with your answers, when appropriate. Hint: For transaction 4, enter the net effect for balance sheet answers. Cash Transaction Asset + 1 2 3 4 5 6 7 8. 9 10 Noncash Assets - Liabilities + Balance Sheet = = = Contributed Capital + Earned Capital Income Statement Revenue. - Expenses Net Income